This paper will focus on the health care reform in China from the perspective of service provision. The introduction of health care insurances, which designed to encourage competitions amongst service providers, requires considerable changes in service provision system. Although the public medical insurance system was implemented in 2000, it remains to be seen whether the level of coverage can be set at appropriate level. Also, it is not easy to separate medical service from pharmacy service, which has traditionally been an important financial source for service providers. There are some possibilities of unnecessary treatments or prescribing medicines if the practitioners are not secured enough incomes under the new medical insurance systems. However, the government needs to keep social expenditures on health care. These will eventually lead to higher service charges on service users. Keeping the cost without reducing qualities of health care services is a next major task for the Chinese policy makers.
